NEW YORK (TheStreet) -- Nomura raised its price target on Microsoft Corp. (MSFT) to $56 from $50 today and maintained its "buy" rating, noting that its valuation relative to other large cap stocks is "attractively positioned at the low end of the range on an enterprise value and unlevered free cash flow basis."
"We are of the view that the new board may soon take up the issue of returning cash to shareholders," analysts said.
"We look at several different scenarios ranging from a substantial leveraged recapitalization when the company might repurchase half its stock over a multiple-year period (probably not likely) to a more moderate, but still shareholder value enhancing, 5% to 10% share repurchase," analysts added.
Shares of Microsoft are up 0.04% to $48.10 in pre-market trading.
Separately, TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."